Investment in data centers turns Spain into a leading hub
In recent years, Spain has emerged as a key player in the data center industry, attracting multi-billion-dollar investments and establishing itself as a technological hub in Southern Europe. This boom is driven by factors such as land availability, renewable energy, and optimal connectivity, positioning the country as an attractive destination for tech giants and investment funds.
Exponential growth in data center investment
In just six months, Spain has solidified itself as the leading European destination for data center investment. According to El Economista, between spring and autumn of 2024 alone, it attracted projects worth over €34.1 billion. This increase reflects investors’ confidence in Spain’s market potential and technological infrastructure. Major players such as Amazon Web Services, Microsoft, Meta, Oracle, and Spanish companies like Iberdrola are driving this expansion.
Microsoft and Oracle are planning major investments in the Madrid region. Microsoft has announced that its AI and cloud infrastructure in Spain will generate €10.7 billion in national GDP and contribute to creating nearly 77,000 jobs between 2024 and 2030. Meanwhile, Oracle, led by Safra A. Catz, will invest €920 million in a new cloud region.
Meanwhile, Spain’s Iberdrola has announced global data center investments worth €10 billion, with a key project in Bilbao.
Aragón and Madrid lead sector growth
In this scenario, Aragón and Madrid have emerged as the main drivers of data center growth in Spain, as highlighted in the Data Center Snapshot report by global real estate consultancy Colliers.
In Aragón, investments from Amazon (AWS) and Microsoft have spurred the creation of key infrastructure, with an expected €25 billion investment over the next ten years. Zaragoza and Huesca already operate with 108 MW IT, and additional projects in Villamayor de Gállego, La Muela, and the Technological Recycling Park are further expanding capacity.
U.S. investment fund Blackstone has followed in the footsteps of Amazon and Microsoft and will build a large data center in this region, with an investment of €7.5 billion, marking its most ambitious project in Europe. Additionally, x2Bit, linked to Capital Energy, is one of the latest companies to join the data center boom in Aragón, strengthening its presence in this rapidly expanding sector.
On the other hand, Madrid, despite facing some saturation in certain areas, is expected to experience significant growth in data center capacity, which could increase nearly fivefold by 2030, reaching 792 MW IT, particularly in the northeast and south of the region. The rise of artificial intelligence is boosting expansion expectations, although demand hotspots are starting to diversify.
Meanwhile, other cities such as Barcelona and Lisbon are also experiencing growth, though to a lesser extent. Barcelona has seen a 68% increase in installed capacity, while Lisbon is experiencing an uptick thanks to its strategic location for submarine cables and rising demand from operators.
Growth prospects
In the coming years, Spain’s data center sector is set to continue transforming the national economy, generating between €30 billion and €70 billion by 2030, equivalent to 2% to 4% of GDP. This is according to a recent Deloitte report, presented during an event organized by the Association of Electric Energy Companies (aelec) and the newspaper El País.
The report projects exponential growth in global data creation, which could increase fivefold by 2030, reaching 600 zettabytes. To meet this demand, Spain’s installed data center capacity is expected to grow between four and six times, reaching 1.3 to 2.1 gigawatts (GW).
According to the consultancy, Spain has unique advantages that position it as a key player in Europe for the development of data processing centers (DPCs). These include affordable renewable energy, ample land for installation, low exposure to natural risks, excellent fiber optic connectivity, and a strategic location between Europe, Africa, and the Americas.
Regions such as Aragón and Madrid will continue to lead this sector’s development, becoming strategic hubs for technological infrastructure construction. At the same time, this trend presents an opportunity for the real estate sector, which must adapt to the specific demands of data center projects, such as large, well-connected spaces with access to sustainable energy resources.
However, this development also presents major challenges. To ensure sustainable integration, around €1.4 billion in annual investment will be needed to modernize the electrical grid, according to the consultancy.
In this regard, given the growing energy demand from data centers, Marta Castro, Director of Regulation at Aelec, emphasizes the need to “accelerate electrical connections to meet the enormous demand of data centers.”